Air pollution is an external cost because it
A) is a pollution of the external environment.
B) is a cost not borne by the producer of the good.
C) benefits no one.
D) is not associated with resource use.
E) is created only when production occurs.
B
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Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
A) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease. B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease. C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase. D) both the equilibrium price and quantity of MP3 players will increase.
If a good or service does not get used up as it is consumed, then it is said to be
A) nonexcludable. B) nonrival. C) nondiscrimination. D) nonconsumable. E) None of the above.
What determines how a change in prices will affect total revenue for a company?
a) elasticity of demand b) the company's pricing policy c) values of elasticity d) the consumers' income
IndividualOpportunity CostPramilla2 units of good X to produce 1 unit of good YSam3 units of good X to produce 1 unit of good YGeorge4 units of good Y to produce 1 unit of good XLucas5 units of good Y to produce 1 unit of good XConsider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good Y?
A. Pramilla B. George C. Lucas D. Sam